Hamburg, September 4, 2020

Private insolvencies continue to fall in Germany - strong increase expected in 2021

Private insolvencies in Germany fell by 8.4 percent in the first half of 2020 compared with the same period of the previous year. In the first six months of the year, 38,695 consumers had to file for insolvency - the lowest number since 2004. This is the conclusion reached by the information service provider CRIFBÜRGEL in its new study "Debt Barometer 1st Half of 2020".

In the first half of the year so far, the corona crisis has hardly had any effect on the development of private insolvencies. At the beginning of the year, in the period before the corona crisis, the economic conditions were still good for many consumers. As in previous years, the decline in private insolvencies was mainly due to the low unemployment rate in Germany. In the meantime, however, the situation on the labour market has worsened. Compared with the previous year, the number of unemployed rose by 637,000 or 29 per cent in June. In addition, over 11 million people had to work short time until June.